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4 Banks to Buy Now from JPMorgan

4. SunTrust


Shares of SunTrust of Atlanta closed at $28.89 Tuesday and have returned 2% year-to-date, following a 62% return during 2012. The shares had fallen by 40% during 2011. Putting that all together, the shares are down 1% since the end of 2010.

The shares trade for 1.2 times tangible book value, and for 9.8 times the consensus 2014 earnings estimate of $2.94 a share. The consensus 2013 EPS estimate is $2.68.

Juneja's price target for SunTrust is $32.50, and he is ahead of the consensus, estimating the company will earn $2.78 this year, with earnings increasing to $3.10 a share in 2014.

Please see TheStreet's earnings coverage for a detailed look at the company's fourth-quarter results, which included a significant decline in expenses.

Juneja said that "SunTrust should be one of the biggest beneficiaries from housing market recovery," among the banks he covers, because the company "has had an unusually large drag from mortgage related issues on several fronts versus peers." He also said that the stock's valuation is "attractive," because "STI trades below regional peers based on tangible book multiple."

With SunTrust focused on becoming more efficient as it continues to work through problem credits in its home market, Juneja said that "acquisition risk is likely to be less than peers."

STI Chart STI data by YCharts

Interested in more on SunTrust? See TheStreet Ratings' report card for this stock.

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